On September 1,Year 1,West Company Borrowed $10,000 from Valley Bank

Multiple Choice

On September 1,Year 1,West Company borrowed $10,000 from Valley Bank.West agreed to pay interest annually at the rate of 6% per year.The note issued by West carried an 18-month term.West Company has a calendar year-end.What is the amount of interest expense that will be reported on West's income statement for Year 1?

A) $-0-
B) $150
C) $60
D) $200